Small businesses may find credit card processing fees to be high, especially if they are on the lower end of volume. Cheapest credit card processing rates often becomes possible by using comparison shopping techniques and making sure the small business owner understands the various costs involved in credit card processing.
There are several options available for small businesses that offer different combinations of equipment, service plans and rates. Cheapest credit card processing rates depends on the needs of the business owner.
Cheapest Credit Card Processing Rates – The Big Four
The biggest four credit card processors in the United States are First Data Corporation, Paymentech, Chase Merchant Services and HSBC Merchant Services. Each has a list of fees with different rates, which are based on the processor’s merchant account agreement with the business owner. Cheapest credit card processing rates can be found by studying each of their fee lists.
Cheapest Credit Card Processing Rates – Equipment Rentals
Equipment rentals are one way to save money in credit card processing fees. Cheapest credit card processing rates often comes from renting equipment from the credit card processor. Cheapest credit card processing rates will vary depending on what equipment is rented and how much it is used. Cheapest credit card processing rates also come from volume discounts, which require a minimum monthly volume to qualify for reduced pricing.
Cheapest Credit Card Processing Rates – Payment Gateways & Virtual Terminals
A payment gateway allows a retail business to accept credit cards over the Internet. Cheapest credit card processing rates for this service often depend on how many transactions are made each month and also what kind of service is required. Cheapest credit card processing rates assume that the merchant account has already been established, which requires signing up with a credit card processor and setting up a merchant account.
Cheapest credit card processing rates vary depending on the pricing model. Cheapest credit card processing rates may be available for higher-risk merchants, often at a slightly higher rate than others or with additional fees for enrollment and monthly minimums.
Cheapest credit card processing rates also apply to retail businesses that process less than $1,000 in transactions each month and do not require regular batch settlement. Cheapest credit card processing rates may be higher for general retail businesses with less than $30,000 in monthly transactions and no need for credit card alerts or recurring billing capabilities.
Cheapest credit card processing rates may also be available to wholesale businesses that process more than $1 million a month and would like to settle transactions within two days. Cheapest credit card processing rates may be lower for wholesale businesses that process less than $250,000 per month and can wait five or more days to settle their batches. Cheapest credit card processing rates also vary depending on the kind of equipment used.
Cheapest credit card processing rates are available for high-volume appliances that are used mostly for transaction processing. Cheapest credit card processing rates are also available for midrange equipment that includes additional features, such as the ability to run reports or receive online documentation. Cheapest credit card processing rates may also be possible through virtual terminals that allow businesses to process transactions over the Internet.
Cheapest credit card processing rates for virtual terminals are often slightly higher than rates for retail businesses that process less than $1,000 in transactions each month. Cheapest credit card processing rates may also be available to wholesale businesses that usually require an application fee along with other fees. Cheapest credit card processing rates vary depending on the service plan selected by the business owner.
Cheapest credit card processing rates assume that the merchant account has already been established, which requires signing up with a credit card processor and setting up a merchant account. Cheapest credit card processing rates may be higher for new business owners or those with poor or limited credit histories. Cheapest credit card processing rates also vary depending on the pricing model of the equipment being used.